Question

what are the different ways of investing money by MNCs

Answer 1

In India, as in many other emerging markets, one of the biggest issues investors face is corporate governance and how much one can trust companies' financials. Here, MNCs have an advantage, as they are perceived to be more upright than most companies.

Vikas V Gupta, fund manager, Alpha L50 (India), Arthveda Fund Management, says, "The Indian market has two segments where corporate governance is a lesser problem, public sector companies or PSUs and MNCs."

Gupta says MNCs are usually headquartered in developed markets,which have stringent laws and capital market regulations. "Further, MNCs are rarely controlled by a single family," he says. "Also, their managements have more freedom. Executive control is also in the hands of independent boards."